Since 2017, the percentage of income spent on rent has decreased in London. Tenants might live further away from offices by working remotely.

Since the pandemic, rented accommodation in London has been more reasonably priced as a result of a tendency toward remote working that has allowed more tenants to live farther from offices.

According to the Office for National Statistics, households spent 39.8% of their income on rent in 2018, down from 50.3% in 2017. The reading for 2021 is slightly higher than the previous year, but it is still lower than it was for the preceding seven.

The findings are at odds with surveys of the sector and the experiences of many renters, who report that the cost of renting property is rising and that there are so few available apartments that potential tenants must bid against one another to have a place to live.

In the UK capital, the average monthly rent is roughly £1,430, which is about twice what it is in the rest of England. However, compared to the 2017 peak, this is far more affordable as a percentage of income.

Contrarily, during the 2021 fiscal year, rents in the southeast of England increased to a peak last reached in 2018, above 30% of household income.

The highest increase occurred in the Humber in northern England in 2021, reaching over 31%, up from over 24% in 2019. Demonstrating increased demand in locations beyond the city.

The information strengthens the case for the pandemic's ongoing influence on tenants' location preferences. After the pandemic, according to industry studies, more people prefer their own space, and some are emphasising work-life balance more than before.

Both the rental and sales markets for homes in London are being impacted by this. Separate figures from the ONS reveal that in October, London's house prices increased by the least amount of any other UK regions, at 3.5% year over year, compared to a growth of 9.5% in Northern Ireland.

Nevertheless, overall rental costs continue to squeeze earnings the most since the global financial crisis. Low supply and high financing rates for landlords continue to drive up prices.

According to Zoopla, a property portal, the cost of a new rental agreement increased 12.1% in the year to October, considerably outpacing the 6% average annual salary rise.

(Sources: Bloomberg.com, cnn.com, theguardian.co.uk)